Amazon.com Inc. (NASDAQ: AMZN) shares rose on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”
The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.
Analysts at William Blair reiterated an Outperform rating on shares of Amazon.com Inc. (NASDAQ: AMZN) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. William Blair currently has a rating of Outperform on the stock. A number of other analysts have spoken on the stock in recent days, and Amazon.com Inc. has secured a consensus one-year price target of $920.10, above the opening price of $749.32, a difference of 12.22 percent. Amazon.com Inc. stock has a 52-week high of $847.21. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.
Shares of Amazon.com Inc. (NASDAQ: AMZN) opened at $749.32 on Monday trading between $748.00 and $754.74, and last traded at $752.73, which represents a jump of $6.24 or 0.84% over the previous closing price.
Amazon.com Inc. (NASDAQ: AMZN) now has a market cap of 357,673.72B.
Amazon.com Inc. (NASDAQ: AMZN) Average Daily Trading Volume
718,775 shares crossed the trading desk yesterday, lower than the norm, out of a total float 393,832,000. Momentum traders often use upticks in trading volume to pinpoint large volume accumulation or distribution by institutional investors, so trading volume is likely to increase in the next few days.
However, one day of significant buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as an indicator that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good confirmation to see them taking a postion in a stock you are researching.
Amazon.com Inc. (NASDAQ: AMZN) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more useful judgments on trades.
Trades for Amazon.com Inc. (NASDAQ: AMZN) have ranged from $474.00 – 847.2100, and the stock now has a 50-day MA of $803.23 and 200-day MA of $755.84. Today’s last price is 11.15%% lower than the 52 week high of $847.21.
Earnings growth is a critical factor to look at when investing in stocks and investors look for companies that have grown their earnings by at least 25% for a 3 year period.
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